PT. BAYAN RESOURCES Tbk. Second Quarter 2009 Update Presentation

Transcription

1 PT. BAYAN RESOURCES Tbk. Second Quarter 2009 Update Presentation 0

2 Operational Performance Overburden Removal Volume Coal Production Volume (million BCM) (million MT) Q08 2Q08 3Q08 4Q08 1Q09 2Q09 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Weighted Average Strip Ratio Average Cash Costs per tonne (*) (US$ tonne) Q08 2Q08 3Q08 4Q08 1Q09 2Q09 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 * (1) Average Cash Costs include Royalty, Barging, SGA (2) US$ is a convenience translation using the average quarterly exchange rate 1

3 Financial Performance Coal Sales Volume Average Coal Selling Price (*) (million MT) (US$/tonne) Q08 2Q08 3Q08 4Q08 1Q09 2Q09 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Revenue (*) EBITDA (2) (US$ mm) (US$ mm) Q08 2Q08 3Q08 4Q08 1Q09 2Q09 * (1) Revenue and Average Coal Selling Price include coal and non-coal sales (2) US$ is a convenience translation using the average quarterly exchange rate 0.0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 2

4 Coal Production (million Mt) Coal Production Volume Q09 coal production volume increased to 3.1 million Mt compared to 1Q09 coal production of 2.4 million MT Increase in volume was generated mostly from the new mines and will continue to increase in the medium term Jan Feb March April May June Budget Actual Coal Production o by Mine Site (in million MT) 2Q09 Budget Actual Gunungbayan Pratamacoal (GBP) Blk II & I Teguh Sinarabadi (TSA) / Firman Ketaun Perkasa (FKP)¹ Perkasa Inakakerta (PIK) Fajar, Tabang, Brian (FTB)² Wahana Baratama Mining (WBM) Total (1) TSA & FKP are two separate concessions but for reporting purposes, the production volumes of these two mines are disclosed together. (2) Fajar, Tabang, and Brian are three separate independent KP s but for reporting purposes, these three mines are disclosed together. Appointment of Leighton and Thiess in WBM and TSA/FKP, respectively increased production efficiencies 1H09 coal production volume was 5.5 million MT and exceeded 1H09 Budget of 4.0 million MT by 38% 2Q09 coal production exceeded Budget by 41%; coal production is anticipated to continue to ramp up 2H09 3

5 Overburden Removal (million BCM) 10.5 Overburden Removal Volume Jan Feb March April May June Budget Actual Overburden Removal (in million BCM) 2Q09 Budget Actual Gunungbayan Pratamacoal (GBP) Blk II & I Teguh Sinarabadi (TSA) / Firman Ketaun Perkasa (FKP)¹ Perkasa Inakakerta (PIK) Fajar, Tabang, Brian (FTB)² Wahana Baratama Mining (WBM) Total (1) TSA & FKP are two separate concessions but for reporting purposes, the production volumes of these two mines are disclosed together. (2) Fajar, Tabang, and Brian are three separate independent KP s but for reporting purposes, these three mines are disclosed together. 2Q09 Overburden Removal increased to 42.2 million BCM compared to 1Q09 overburden removal of 32.0 million BCM Overburden removal increase was due to Swap out of old equipment for new at GBP Improved efficiency at WBM Partially offset by temporary stoppage at one of the TSA mine areas 1H09 Overburden Removal was 74.2 million BCM and exceeded 1H09 Budget of million BCM by 45% 2Q09 overburden removal exceeded Budget by 56% as a result of an increase in production efficiency 4

6 Weighted Average Strip Ratio Weighted Average Strip Ratio 2Q09 weighted average strip ratio increased to 13.7 : 1 compared to Q09 weighted average strip ratio of : Increase in weighted average strip ratio was due to operational difficulties at GBP and TSA Jan Feb March April May June Significant reduction in weighted Budget Actual average strip ratio compared to last 2Q09 Weighted Average Strip Ratio ( :1) year as production volume from new Budget Actual mines increase Gunungbayan Pratamacoal (GBP) Blk II & I Teguh Sinarabadi (TSA) / Firman Ketaun Perkasa (FKP)¹ Perkasa Inakakerta (PIK) Fajar, Tabang, Brian (FTB)² Wahana Baratama Mining (WBM) Total (1) TSA & FKP are two separate concessions but for reporting purposes, the production volumes of these two mines are disclosed together. (2) Fajar, Tabang, and Brian are three separate independent KP s but for reporting purposes, these three mines are disclosed together. 2Q09 weighted average strip ratio slightly exceeded budget of 12.0 : 1 due to temporary operational difficulties 5

7 Average Cash Costs Average Cash Costs per tonne (*) Composition of Cash Costs per tonne * (US$ to onne) FY2008 FY2009E 1Q09 2Q09 (1) Average Cash Costs include Royalty, Barging, SGA (2) US$ is a convenience translation using the average yearly & quarterly exchange rate (3) E represents Budgeted Figure Pertamina Diesel Oil Price (3) 21.4% 22.6% 2.2% 53.8% 56.8% 4.7% 10.3% 9.3% 8.4% 10.5% 1H H 2009 OB Royalty Barging Coal mining & hauling Others 2Q09 Average cash costs consistent with 1Q09 average cash costs (ID DR/liter) 10,500 7,000 3, ,691 5,500 5,181 5,572 FY2008 FY2009E 1Q09 2Q09 Average cash costs is anticipated to remain in the upper range of the Budget of US$50-55/MT 1H09 average cash costs is within the Budgeted range due to lower fuel prices and weighted average strip ratio 2Q09 average cash costs of US$54.5 / MT is within the range of the Budgeted cash costs of US$ / MT 6

8 Coal Sales (by volume) (million Mt) Coal Sales Volume Q09 coal sales volume increased to 3.2 million Mt compared to 1Q09 coal sales of 2.4 million MT and kept pace with production volume increases Jan Feb March April May June (million Mt) Budget Actual Coal Sales Volume 3.2 Top 5 customers (sales volume) are : Vitol, Enel, Adani, J. Aron, and Coal & Oil 1H09 coal sales volume was 5.6 million MT and exceeded 1H09 Budget of 4.1 million MT by 37% Q09 2Q09 Budget Actual 2Q09 coal sales volume exceeded Budget by 39%; top 5 customers in 1H09 comprised 84% of coal sales volumes 7

9 Geographic Distribution (by volume) 1H % 12.6% 35.2% 1H % Europe and Asia remain the largest markets for higher calorific value coal accounting for over 60% of coal sales 2.3% 10.8% Malaysia Korea Others India 4.8% 9.3% Others Malaysia Korea India Established a strong customer base in India for the lower calorific value coal 6.3% Taiwan 11.2% Japan Italy 1H08 Coal Sales 3.2 million MT 17.8% 8.2% Taiwan 13.5% Japan Italy 1H09 Coal Sales 5.6 million MT 18.2% Demand for new coal-fired power generation from the development and urbanization of emerging economies (i.e. China, India Indonesia, Malaysia, and Thailand) sets a positive trend in the coal mining sector India, Italy, Japan, Taiwan, and Korea comprised 83% of Bayan s 1H09 coal sales 8

10 Committed Sales (as of June 2009) FY 09 Committed Sales : 10 million MT CONTRACT TONNAGE 100% FY 09 Contract Status FIXED PRICE 82% FLOATING PRICE 18% FY 09 Price Status Type of Sales Contract Long-term fixed volume with annual price negotiations Long-term fixed volume with index linked pricing Yearly negotiated on volumes and price Spot volumes and pricing Committed sales comprise of 70% bituminous coal; 30% sub bituminous coal with a combined average CV of 5836 GAR FY09 average fixed price is within the range of US$59-61; floating price is linked to API / Newcastle FY09 sales volume 100% contracted; 82% fixed price and 18% floating price. Committed sales include 70% bituminous coal and 30% sub bituminous coal 9

11 Average Selling Price (ASP) * (US$ to onne) Average Coal Selling Price (*) FY2008 FY2009E 1Q09 2Q09 (1) ASP includes coal and non-coal sales (2) US$ is a convenience translation using the average yearly & quarterly exchange rate (3) E represents Budgeted Figure Diversified Products (1) 1H09 2Q09 Average Selling Price went down to US$60.3/MT compared to 1Q09 ASP of US$62.3/MT Coal price weakness is anticipated to remain within the same range till year end 1H09 ASP was US$60.8/MT and achieved the lower part of the Budgeted ASP guidance due to global weakening of coal price Low Rank CV 11.8% Sub Bituminous 20.6% Bituminous 21.4% High CV Bituminous 46.2% High CV Sub Low Rank (1) Coal Type Bituminous Bituminous Bituminous CV Energy kcal/kg GAR 6,301 7,200 5,801 6,300 4,200 5,000 < 4,200 2Q09 ASP of US$60.3 / MT is within the range of the Budgeted ASP of US$60-65/MT 65/MT and is anticipated to be in the same range for 2H09 10

12 Financial Highlights Quarterly (in million IDR) Variance 2Q09 revenue increased as a result 1Q09 2Q09 Revenue 1,748,738 2,036, % of increased sales volume Gross Profit 317, ,353 (4.6%) EBITDA 201, ,081 (2.9%) 2Q09 profitability reduced slightly due to lower ASP partially offset by Total Assets 7,102,604 6,717,108 (5.4%) reduced cost Total Equity 2,183,151 2,405, % (in million IDR) YTD 1H08 1H09 Variance Revenue 1,892,211 3,785, % Gross Profit 277, , % EBITDA 143, , % Total Assets 3,564,718 6,717, % Total Equity (397,547) 2,405,139 -NA- 1H09 vs 1H08 demonstrates strong top line revenue growth principally a result of increased volumes Overall, 1H09 Gross Profit significantly higher than 1H08 as able to maintain margin during Q09 revenue growth is 16.5% compared to 1Q09, however, profitability is reduced slightly due to lower ASP partially offset by reduced cost 11

13 Budget vs Actual 1H 09 (YTD) (in million IDR) 1H09 (YTD) Budget Actual Variance Revenue 2,780,034 3,785, % Gross Profit 825, ,216 (24.7%) Operating Profit 451, ,782 (51.8%) EBITDA 615, ,076 (35.3%) Net Profit after Tax 185, ,032 (40.3%) Note: Assumption in the Budget : US$1 = IDR10,000 Strong top line revenue growth, principally p a result of increased volumes; however this was partially offset with lower ASP as benchmark lower than Budgeted Profitability decreased compared to Budget principally as a result of lower than Budgeted ASP Strong top line revenue growth as a result of increased volumes but profitability lower than Budget as a result of lower than Budgeted ASP 12

14 Capital and Deferred Expenditure Total Capital and Deferred Expenditure for 2009: US$88.5m 2Q 09 : US$11.9m 1Q 09 : US$18.7m 66% % 21% Construction in Progress Mobilization Heavy Equipment Machinery Office Equipment 2009 Continued investment in infrastructure to support rapid production growth 13

15 Liquidity Position (as at 30 June 2009) Outstanding Debt (US$219.8m) Cash Position IDR1,105b (US$108m) Vitol & Leasing Facility % US$ IDR Syndicated Facility % Note : Includes US$26 million restricted cash 14

16 Debt Facilities (as at 30 June 2009) Loan Maximum Facility Tenor Current Outstanding Loan Syndicated Loan (April 2008) - Amortizing Term Loan US$ 150 million 5 Years US$ million - Revolving Capex Facility US$ 100 million 3 Years US$ 50.0 million - Working Capital Facility US$ 50 million 5 Years Vitol & Leasing Facility US$ 50 million 3 Years US$ 43.8 million ANZ US$ 30 million Annual Revolving 15

17 Debt Repayment Profile Low principal repayments in 2009 and 2010 No requirement to obtain refinancing (in US$m) RCF can be extended in 2011 to 2013 with Lenders approval US$300m Syndication Loan - TLF US$300m Syndication Loan - RCF US$50m Vitol Facility Low principal repayments in 2009 and 2010; no requirement to get refinancing in the medium term 16

18 Appendix PT Gunungbayan Pratamcoal PT Perkasa Inakakerta PT Wahana Baratama Mining PT Teguh Sinar Abadi / PT Firman Ketaun Perkasa PT Fajar Sakti Prima / PT Bara Tabang / PT Brian Anjat Sentosa PT Leighton Contractors Indonesia PT Thiess Contractor Indonesia Average Selling Price Gross as Received Estimate / Budget Figure Forecast Bank Cubic Metre Metric Tonne GBP PIK WBM TSA / FKP FTB Leighton Thiess ASP GAR E F BCM MT 17

19 Disclaimer This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events. These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for coal generally and for our products in particular, the success of our mining activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for planned expansion efforts, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement. 18

20 Thank You For more information, please contact : Investor Relations Jocelle Concio Investor Relations investor.relations@bayan.com.sg 19